2.2.0.25falsefalse0211 - Disclosure - Debt Obligationstruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) USD ($) / shares $Jan-01-2011_Mar-31-2011http://www.sec.gov/CIK0000805022duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0PureStandardhttp://www.xbrl.org/2003/instancepurexbrli0USDUSD$2true0bpl_DebtObligationsAbstractbplfalsenadurationDebt Obligations.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringDebt Obligations.falsefalseDebt Obligations [Abstract]3false0us-gaap_DebtDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>11. DEBT OBLIGATIONS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Long-term debt consists of the following at the dates indicated (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 31,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">4.625% Notes due July 15, 2013 (1) </div></td> <td> </td> <td align="left">$</td> <td align="right">300,000</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">300,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">5.300% Notes due October 15, 2014 (1) </div></td> <td> </td> <td> </td> <td align="right">275,000</td> <td> </td> <td> </td> <td> </td> <td align="right">275,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">5.125% Notes due July 1, 2017 (1) </div></td> <td> </td> <td> </td> <td align="right">125,000</td> <td> </td> <td> </td> <td> </td> <td align="right">125,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">6.050% Notes due January 15, 2018 (1) </div></td> <td> </td> <td> </td> <td align="right">300,000</td> <td> </td> <td> </td> <td> </td> <td align="right">300,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">5.500% Notes due August 15, 2019 (1) </div></td> <td> </td> <td> </td> <td align="right">275,000</td> <td> </td> <td> </td> <td> </td> <td align="right">275,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">4.875% Notes due February 1, 2021 (1) </div></td> <td> </td> <td> </td> <td align="right">650,000</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">6.750% Notes due August 15, 2033 (1) </div></td> <td> </td> <td> </td> <td align="right">150,000</td> <td> </td> <td> </td> <td> </td> <td align="right">150,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Credit Facility </div></td> <td> </td> <td> </td> <td align="right">335,000</td> <td> </td> <td> </td> <td> </td> <td align="right">98,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">BES Credit Agreement </div></td> <td> </td> <td> </td> <td align="right">235,000</td> <td> </td> <td> </td> <td> </td> <td align="right">284,300</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Services Company 3.60% ESOP Notes due March 28, 2011 </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,531</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Retirement premium </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total debt </div></td> <td> </td> <td> </td> <td align="right">2,645,000</td> <td> </td> <td> </td> <td> </td> <td align="right">1,808,825</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other, including unamortized discounts and fair value hedges </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5,929</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,607</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Subtotal debt </div></td> <td> </td> <td> </td> <td align="right">2,639,071</td> <td> </td> <td> </td> <td> </td> <td align="right">1,805,218</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Less: Current portion of long-term debt </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(235,000</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(285,825</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total long-term debt </div></td> <td> </td> <td align="left">$</td> <td align="right">2,404,071</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,519,393</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(1)</td> <td> </td> <td>We make semi-annual interest payments on these notes based on the rates noted above with the principal balances outstanding to be paid on or before the due dates as shown above.</td> </tr> </table>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair values of our aggregate debt and credit facilities were estimated to be $2,733.9 million and $1,897.5 million at March 31, 2011 and December 31, 2010, respectively. The fair values of the fixed-rate debt were estimated by observing market trading prices and by comparing the historic market prices of our publicly-issued debt with the market prices of other MLPs’ publicly-issued debt with similar credit ratings and terms. The fair values of the variable-rate debt are their carrying amounts, as the carrying amount reasonably approximates fair value due to the variability of the interest rates. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">   <i>Notes Offering</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On January 13, 2011, we sold $650.0 million aggregate principal amount of 4.875% Notes due 2021 (the “4.875% Notes”) in an underwritten public offering. The notes were issued at 99.62% of their principal amount. Total proceeds from this offering, after underwriters’ fees, expenses and debt issuance costs of $4.9 million, were approximately $642.6 million, and were used to fund a portion of the purchase price for our acquisition of BORCO (see Note 2). In connection with this offering, we settled a treasury lock agreement, which resulted in the receipt of a settlement of $0.5 million, which is being amortized as a reduction to interest expense over the ten-year term of the 4.875% Notes (see Note 14). </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">   <i>Bridge Loans</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In December 2010, in connection with the proposed BORCO acquisition, we obtained a commitment from commercial banks for senior unsecured bridge loans in an aggregate amount up to $595 million (or up to $775 million in the event we purchased both First Reserve’s 80% interest and Vopak’s 20% interest in FRBCH) (the “Bridge Loans”). The commitment was to expire upon the earliest to occur of the termination date as defined in the BORCO sale and purchase agreement, the consummation of the BORCO acquisition, the termination of the BORCO sale and purchase agreement or 120 days after December 18, 2010. We paid $2.0 million of fees in December 2010 associated with these Bridge Loans. In January 2011, we terminated the Bridge Loans upon issuance of the 4.875% Notes. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">   <i>Services Company ESOP Notes</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Services Company had total debt outstanding of $1.5 million at December 31, 2010 consisting of 3.60% Senior Secured Notes (the “3.60% ESOP Notes”) due March 28, 2011 payable by the ESOP to a third-party lender. The 3.60% ESOP Notes were repaid on March 28, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">   <i>Credit Facility</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     We have a borrowing capacity of $580.0 million under an unsecured revolving credit agreement (the “Credit Facility”) with SunTrust Bank, as administrative agent, which may be expanded up to $780.0 million subject to certain conditions and upon the further approval of the lenders. The Credit Facility’s maturity date is August 24, 2012, which we may extend for up to two additional one-year periods. Borrowings under the Credit Facility bear interest under one of two rate options, selected by us, equal to either (i) the greater of (a) the federal funds rate plus 0.5% and (b) SunTrust Bank’s prime rate plus an applicable margin, or (ii) the London Interbank Offered Rate (“LIBOR”) plus an applicable margin. The applicable margin is determined based on the current utilization level of the Credit Facility and ratings assigned by Standard & Poor’s Rating Services and Moody’s Investor Service for our senior unsecured non-credit enhanced long-term debt. At March 31, 2011 and December 31, 2010, $335.0 million and $98.0 million, respectively, were outstanding under the Credit Facility. The weighted average interest rate for borrowings under the Credit Facility was 0.6% at March 31, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Credit Facility requires us to maintain a specified ratio (the “Funded Debt Ratio”) of no greater than 5.00 to 1.00 subject to a provision that allows for increases to 5.50 to 1.00 in connection with certain acquisitions. The Funded Debt Ratio is calculated by dividing consolidated debt by annualized EBITDA, which is defined in the Credit Facility as earnings before interest, taxes, depreciation, depletion and amortization, in each case excluding the income of certain of our majority-owned subsidiaries and equity investments (but including distributions from those majority-owned subsidiaries and equity investments). At March 31, 2011, our Funded Debt Ratio was approximately 4.48 to 1.00. As permitted by the Credit Facility, the $235.0 million of borrowings by Buckeye Energy Services LLC (“BES”) under its separate credit agreement (discussed below) was excluded from the calculation of the Funded Debt Ratio. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In addition, the Credit Facility contains other covenants including, but not limited to, covenants limiting our ability to incur additional indebtedness, to create or incur liens on our property, to dispose of property material to our operations, and to consolidate, merge or transfer assets. At March 31, 2011, we were not aware of any instances of noncompliance with the covenants under our Credit Facility. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     At March 31, 2011 and December 31, 2010, we had committed $1.5 million and $1.4 million, respectively, in support of letters of credit. The obligations for letters of credit are not reflected as debt on our condensed consolidated balance sheets. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">   <i>BES Credit Agreement</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     BES has a credit agreement (the “BES Credit Agreement”) that provides for borrowings of up to $500.0 million with a maturity date of June 25, 2013. The maximum amount available to be borrowed under the BES Credit Agreement is initially limited to $350.0 million. An accordion feature provides BES the ability to increase the commitments under the BES Credit Agreement to $500.0 million, subject to obtaining the requisite commitments and satisfying other customary conditions. In addition to the accordion, subject to BES’s satisfaction of certain financial covenants as set forth in the financial covenants table below, BES may, from time to time, elect to increase or decrease the maximum amount available for borrowing under the BES Credit Agreement in $5.0 million increments, but in no event below $150.0 million or above $500.0 million. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Under the BES Credit Agreement, borrowings accrue interest under one of three rate options, at BES’s election, equal to (i) the Administrative Agent’s Cost of Funds (as defined in the BES Credit Agreement) plus 2.25%, (ii) the Eurodollar Rate (as defined in the BES Credit Agreement) plus 2.25% or (iii) the Prime Rate (as defined in the BES Credit Agreement) plus 1.25%. The BES Credit Agreement also permits Daylight Overdraft Loans (as defined in the BES Credit Agreement), Swingline Loans (as defined in the BES Credit Agreement) and letters of credit. Such alternative extensions of credit are subject to certain conditions as specified in the BES Credit Agreement. The BES Credit Agreement is secured by liens on certain assets of BES, including its inventory, cash deposits (other than certain accounts), investments and hedging accounts, receivables and intangibles. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The balances outstanding under the BES Credit Agreement were approximately $235.0 million and $284.3 million at March 31, 2011 and December 31, 2010, respectively, both of which were classified as current liabilities in our condensed consolidated balance sheets due to the borrowing terms set forth in the BES Credit Agreement. The BES Credit Agreement requires BES to meet certain financial covenants, which are defined in the BES Credit Agreement and summarized below (in millions, except for the leverage ratio): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="21%"> </td> <td width="5%"> </td> <td width="21%"> </td> <td width="5%"> </td> <td width="21%"> </td> <td width="5%"> </td> <td width="21%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>Borrowings</b></td> <td> </td> <td nowrap="nowrap" align="center"><b>Minimum</b></td> <td> </td> <td nowrap="nowrap" align="center"><b>Minimum</b></td> <td> </td> <td nowrap="nowrap" align="center"><b>Maximum</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>outstanding on</b></td> <td> </td> <td nowrap="nowrap" align="center"><b>Consolidated Tangible</b></td> <td> </td> <td nowrap="nowrap" align="center"><b>Consolidated Net</b></td> <td> </td> <td nowrap="nowrap" align="center"><b>Consolidated</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>BES Credit Agreement</b></td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Net Worth</b></td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Working Capital</b></td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Leverage Ratio</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td align="center" valign="top"> <div style="margin-left:15px; text-indent:-15px">$150 </div></td> <td> </td> <td align="center" valign="top">$40 </td> <td> </td> <td align="center" valign="top">$30 </td> <td> </td> <td align="center" valign="top">7.0 to 1.0</td> </tr> <tr valign="bottom"> <td align="center" valign="top">Above $150 up to $200 </td> <td> </td> <td align="center" valign="top">$50 </td> <td> </td> <td align="center" valign="top">$40 </td> <td> </td> <td align="center" valign="top">7.0 to 1.0</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="center" valign="top">Above $200 up to $250 </td> <td> </td> <td align="center" valign="top">$60 </td> <td> </td> <td align="center" valign="top">$50 </td> <td> </td> <td align="center" valign="top">7.0 to 1.0</td> </tr> <tr valign="bottom"> <td align="center" valign="top">Above $250 up to $300 </td> <td> </td> <td align="center" valign="top">$72 </td> <td> </td> <td align="center" valign="top">$60 </td> <td> </td> <td align="center" valign="top">7.0 to 1.0</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="center" valign="top">Above $300 up to $350 </td> <td> </td> <td align="center" valign="top">$84 </td> <td> </td> <td align="center" valign="top">$70 </td> <td> </td> <td align="center" valign="top">7.0 to 1.0</td> </tr> <tr valign="bottom"> <td align="center" valign="top">Above $350 up to $400 </td> <td> </td> <td align="center" valign="top">$96 </td> <td> </td> <td align="center" valign="top">$80 </td> <td> </td> <td align="center" valign="top">7.0 to 1.0</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td align="center" valign="top">Above $400 up to $450 </td> <td> </td> <td align="center" valign="top">$108 </td> <td> </td> <td align="center" valign="top">$90 </td> <td> </td> <td align="center" valign="top">7.0 to 1.0</td> </tr> <tr valign="bottom"> <td align="center" valign="top">Above $450 up to $500 </td> <td> </td> <td align="center" valign="top">$120 </td> <td> </td> <td align="center" valign="top">$100 </td> <td> </td> <td align="center" valign="top">7.0 to 1.0 </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt"> At March 31, 2011, BES’s Consolidated Tangible Net Worth and Consolidated Net Working Capital were $120.9 million and $72.8 million, respectively, and the Consolidated Leverage Ratio was 2.8 to 1.0. The weighted average interest rate for borrowings outstanding under the BES Credit Agreement was 2.5% at March 31, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In addition, the BES Credit Agreement contains other covenants, including, but not limited to, covenants limiting BES’s ability to incur additional indebtedness, to create or incur certain liens on its property, to consolidate, merge or transfer its assets, to make dividends or distributions, to dispose of its property, to make investments, to modify its risk management policy, or to engage in business activities materially different from those presently conducted. At March 31, 2011, we were not aware of any instances of noncompliance with the covenants under the BES Credit Agreement. </div> <div align="left"> </div> </div>  <!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringInformation about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 falsefalseDEBT OBLIGATIONS12Debt ObligationsUnKnownUnKnownUnKnownUnKnownfalsetrue